BACKGROUND

1. The Malaysia–Türkiye Free Trade Agreement (MTFTA) was signed on 17 April 2014 in Ankara by Dato' Sri Mustapa Mohamed, then Minister of International Trade and Industry, Malaysia, and His Excellency Nihat Zeybekci, Minister of Economy of the Republic of Türkiye. The MTFTA entered into force on 1 August 2015.

2. The Agreement enables Malaysia to secure preferential tariff rates for a wide range of exports, ensuring competitive access to the Turkish market. These tariff preferences help strengthen Malaysia’s trade position and open opportunities for Malaysian exporters across key sectors. The MTFTA also covers comprehensive provisions including market access for trade in goods, rules of origin, customs procedures and cooperation, sanitary and phytosanitary measures (SPS), technical barriers to trade (TBT), trade remedies, economic and technical cooperation, transparency, institutional arrangements and dispute settlement mechanisms.

3. In an effort to further enhance bilateral economic cooperation, Malaysia and Türkiye have completed expansion negotiations to include trade in services, investment, and e-commerce. This expansion was formalised through the signing of the First Protocol to Amend the MTFTA on 29 September 2022 in Ankara, which entered into force on 1 August 2024.

4. This enhanced agreement not only secures Malaysia’s continued access to the Turkish market for goods, but also creates new opportunities in services and investment. Sectors such as logistics, construction, ICT and Islamic finance are expected to benefit. In addition, the inclusion of digital trade and e-commerce provisions is particularly valuable for Malaysian SMEs aiming to expand into the West Asia and European markets through Türkiye’s strategic geographic location.

5. The text of the MTFTA and the First Protocol to Amend the MTFTA can be accessed via the respective links

TRADE WITH TURKEY

In 2024:

1. Malaysia’s trade with Türkiye amounted to RM24.13 billion (USD5.28 billion), increased by 18.7% from RM20.34 billion (USD4.46 billion) recorded in 2023.

2. Malaysia’s total exports to Türkiye increased by 17.1% to RM20.54 billion (USD4.49 billion) from RM17.53 billion (USD3.85 billion) in 2023, mainly contributed by the increase in exports of iron and steel products to Türkiye.

3. Malaysia’s total imports from Türkiye increased by 28.4% to RM3.60 billion (USD0.79 billion) from RM2.80 billion (USD0.61 billion) in 2023, mainly contributed by the increase in imports of petroleum products from Türkiye.

4. Malaysia’s major exports to Türkiye were:

   1. Iron and Steel Products;
   2. Palm Oil and Palm Oil-Based Agriculture Products;
   3. Textiles, Clothing & Footwear
   4. Manufactures of Metal; and
   5. Electrical and Electronic Products.

5. Malaysia’s major exports from Türkiye were:

   1. Petroleum Products;
   2. Machinery, Equipment and Parts;
   3. Chemicals and Chemical Products;
   4. Processed Food; and
   5. Jewellery.

SCOPE

The MTFTA is a comprehensive trade agreement that focuses on facilitating trade and strengthening economic cooperation between Malaysia and Türkiye. It includes substantive provisions across a wide range of areas that are critical to ensuring smooth and mutually beneficial trade relations. The key areas covered under the Agreement are:

1. Trade in Goods

2. Rules of Origin

3. Customs Procedures and Cooperation

4. Sanitary and Phytosanitary Measures

5. Technical Barriers to Trade

6. Trade Remedies

7. Economic and Technical Cooperation

8. Transparency

9. Institutional Provisions

10. Dispute Settlement

11. General Exceptions

12. Trade in Services

13. Movement of Business Persons

14. E-Commerce

15. Investment

Note: Chapters on Initial Provisions, General Definitions and Final Provisions have been excluded in the list, as these chapters serve more as procedural or administrative elements rather than substantive areas of the Agreement.

TRADE IN GOODS

• The Agreement outlines commitments from both countries on liberalization of trade in goods. Malaysia and Turkey will progressively reduce or eliminate tariffs on substantial number of products traded between both countries.

• The FTA will be realised over a period of 8 years. Turkey will grant preferential market access to Malaysian exports. Turkey will eliminate duties on 85.89% of tariff lines.

Malaysia’s Commitment

• Malaysia's commitment involves tariff reduction/elimination on 98.86% from the total tariff lines based on modalities as follows:

 

Modalities	Description	Tariff lines (HS2007)	%
Fast Track (FT)	Immediate elimination on 1 August 2015	7317	70.38
Normal Track (NT)	Gradually reduced and eliminated on 1 January 2018	1040	10.00
Sensitive Track (ST)	Gradually reduced and eliminated on 1 January 2020	1725	16.59
Highly Sensitive Track (HST)	Gradually reduced and eliminated on 1 January 2023	196	1.89

Turkey’s Commitment

• Turkey will eliminate duties on 85.89% of tariff lines based on modalities as follows:  

 

Modalities	Description	Tariff lines (HS2007)	%
Fast Track (FT)	Immediate elimination on 1 August 2015	8309	68.70
Normal Track (NT)	Gradually reduced and eliminated on 1 January 2018	302	2.50
Sensitive Track (ST)	Gradually reduced and eliminated on 1 January 2020	877	7.25
Highly Sensitive Track (HST)	Gradually reduced and eliminated on 1 January 2023	898	7.43

 

• Upon entry into force of the FTA, Turkey import duties by 30% for palm oil products such as Crude Palm Oil, Processed Palm Oil, Crude Palm Kernel Oil and Processed Palm Kernel Oil. No further reduction will be given for these products. Including palm oil-based products, one off tariff reduction given to 322 tariff lines (2.67%) agricultural and fisheries products. Tariff for another 970 tariff lines (8.02%) will be at locked in at current rate for Malaysia. In essence, only 3.44% of Turkey’s tariff lines are excluded from the Agreement.

• For textiles, Malaysian exporters are given immediate elimination of additional customs duties (ACD) which these safeguard duties are imposed over and above the MFN duties for selected textile products.

• In the case of Malaysia, the elimination of duties by Turkey through MTFTA will compensate for the withdrawal of the GSP benefits previously offered by Turkey until 31 December 2013. Therefore, with the MTFTA, Malaysian exporters can continue to gain market access at preferential duties and remain competitive in exporting to Turkey, offering further advantages to Malaysian exporters.

EXPORT-IMPORT PROCEDURES

Exporting to Turkey

• If you are exporting to Turkey, please click this link to check on the preferential duties under MTFTA:

Turkey - Schedule of Commitment

• Nevertheless, in order for your products to enjoy the preferential duties, the products must first fulfill the Rules of Origin (ROO) criteria under MTFTA.

• Products listed under Turkey’s Exclusion List (EL) do not qualify for duty reduction or elimination under MTFTA. The Turkish importers would need to pay the duty based on the effective MFN rate.

 

Calculation of Preferential Duties Reduction when exporting to Turkey - Turkey’s Schedule of Commitment

Fast Track (FT)	:	Immediate Elimination upon Entry Force of MTFTA Note All tariff lines with FT are already at 0% since 1 August 2015.
Normal Track (NT)	:	Gradually reduced and eliminated on the 4th year from date of MTFTA is implemented Step 1 Starting 1 August 2015, tariff will be gradually reduced and eliminated in four(4) equal annual stages. Step 2 Check the Base Rate or tariff lines with NT Step 3 Once the Base Rate is known: For example, if the Base Rate is 8%, starting from 1 August 2015, each year, the annual reduction % would be: 8%/4 = 2% Starting 1 August 2015, the reduction would be: (1st year) 1 August 2015 : 8%-2%= 6% (2nd year) 1 January 2016 : 6%-2%= 4% (3rd year) 1 January 2017 : 4%-2%= 2% (4th year) 1 January 2018 and onwards: 2%-2%= 0%
Sensitive Track (ST)	:	Gradually reduced and eliminated on the 6th year from date of MTFTA is implemented Step 1 Starting 1 August 2015, tariff will be gradually reduced and eliminated in six (6) equal annual stages. Step 2 Check the Base Rate or tariff lines with ST Step 3 Once the Base Rate is known, for example if the Base Rate is 8%, starting from 1 August 2015, each year, the annual reduction % would be: 8%/6 = 1.33% Starting 1 August 2015, the reduction would be: (1st year) 1 August 2015   : 8%-1.33%= 6.67% (2nd year) 1 January 2016 : 6.67%-1.33%= 5.34% (3rd year) 1 January 2017 : 5.34%-1.33%= 4.01% (4th year) 1 January 2018 : 4.01%-1.33%= 2.68% (5th year) 1 January 2019 : 2.68%-1.33%= 1.35% (6th year) 1 January 2020 : 1.35%-1.33% = 0.02% (0%)
Highly          Sensitive Track (HST)	:	Gradually reduced and eliminated on the 9th year from the date of MTFTA enter into force Step 1 Starting 1 August 2015, tariff will be gradually reduced and eliminated in nine (9) equal annual stages. Step 2 Check the Base Rate or tariff lines with HST Step 3 Once the Base Rate is known, for example if the Base Rate is 8%, starting from 1 August 2015, each year, the reduction would be: 8%/9 = 0.89% Starting 1 August 2015, the reduction would be: (1st year) 1 August 2015   : 8%-0.89%= 7.11% (2nd year) 1 January 2016 : 7.11%-0.89%= 6.22% (3rd year) 1 January 2017 : 6.22%-0.89%= 5.33% (4th year) 1 January 2018 : 5.33%-0.89%= 4.44% (5th year) 1 January 2019 : 4.44%-0.89%= 3.55% (6th year) 1 January 2020 : 3.55%-0.89%= 2.66% (7th year) 1 January 2021 : 2.66%-0.80%= 1.77% (8th year) 1 January 2022 : 1.77%-0.89%= 0.88% (9th year) 1 January 2023 and onwards: 0.88%-0.89%= 0%

 

Importing from Turkey

• If you are importing from Turkey, please click this link to check on the preferential duties under MTFTA:

Malaysia - Schedule of Commitment

• Nevertheless, in order for the product to enjoy the preferential duties, it must fulfill the Rules of Origin (ROO) criteria under MTFTA.

• Products listed under Malaysia’s Exclusion List (EL) do not qualify for duty reduction or elimination under MTFTA. The Malaysian importer would need to pay the duty based on the current MFN rate.

SERVICES

• Services/Investment was not in the Scope of MTFTA that was signed on 17 April 2014 and came into effect on 1 August 2015.

• Based on Article 14.3 (Evolutionary Clause), Malaysia and Turkey may consider negotiating the Services/ Investment Chapter, 1 year after the entry into force of the Agreement.

CONTACT US

For Preferential Certificate of Origin / Rules of Origin related matters, please contact:

1.	Ms. Zanariah Saibi
	DL	:	03-6208 4752
	E-mail	:	zanariah.saibi@miti.gov.my

 

2.	Ms. Suharni Mohamed Rosli
	DL	:	03-6208 4715
	E-mail	:	suharni.rosli@miti.gov.my

 

3.	Ms. Nur Aqidatul Atika Muhammad Ghani
	DL	:	03-6208 4746
	E-mail	:	aqidatul.atika@miti.gov.my

 

For other enquiries, please contact the FTA focal point(s) as follows:

Ms. Norazilawati Rohanuddin
DL	:	03-6200 0510
E-mail	:	azi.rohanuddin@miti.gov.my